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How should prices be set when a company has excess capacity? Why should prices be set this way? Consider both short-term and long-term pricing decisions.

  1. How should prices be set when a company has excess capacity? Why should prices be set this way? Consider both short-term and long-term pricing decisions.

  1. Why is cause and effect so important in understanding the concept of ABC? In practice, how is cause and effect determined for cost accounting relationships?

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